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HomeMy WebLinkAbout14087 RES - 12/21/1977• JKH:hb:12 /19/77 • A RESOLUTION APPROVING AN "AGREEMENT FOR PUBLIC BODY APPROVAL OF SECTION 312 REHABILITATION LOANS ", DESIGNATING AN OFFICIAL AUTHORIZED TO APPROVE SUCH LOANS ON BEHALF OF THE CITY OF CORPUS CHRISTI, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS PERTAINING TO THIS AGREEMENT AND DECLARING AN EMERGENCY. WHEREAS, under Section 312 of the Housing Act of 1964, as amended (herein referred to as Section 312), the Secretary of Housing and Urban Development is authorized, under the conditions and to the extent pro- vided therein, to make loans (Section 312 loans) to owners and tenants of property in certain areas for the rehabilitation of their property and to designate or to use as agent any local public agency or organization to the extent he determines appropriate and desirable to carry out the objectives of Section 312 in the areas involved; and WHEREAS, Title VI of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color or national origin under any program or activity receiving Federal financial assistance and Executive Order 11063 prohibits discrimination on basis of race, color, creed or national origin in sale, lease or other disposition of residential property, including land intended for residential use, or in the use or occupancy thereof; and WHEREAS, the City of Corpus Christi has responsibility and jurisdiction to carry out a Community Development Block Grant Program, in which Section 312 loans are authorized; and WHEREAS, it is desirable and will significantly benefit the rehabilitation objectives of such program administered by the City of Corpus Christi for the City to have direct approval authority with respect to Section 312 loans: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager is hereby authorized and directed to execute on behalf of the City an Agreement For Public Body Approval of Section 312 Rehabilitation Loans, and to act as the authorized representative of the City in connection therewith. MICROFILM . �UL 0 71� 14087 SECTION 2. That it is cognizant that under an Agreement For Public Body Approval of Section 312 Rehabilitation Loans, Section 312 loans may be approved only in accordance with outstanding policy of the Department of Housing and Urban Development, as it exists from time to time, and subject to availability of funds therefor. SECTION 3. That the Director of the Department of Planning and Urban Development is hereby authorized to approve, on behalf of the City, Section 312 loans under the provisions of said Agreement, and such official is hereby directed to approve such loans only in accordance with the policy of the Department of Housing and Urban Development, and subject to avail- ability of funds as determined by that Department. SECTION 4. That the United States of America and the Secretary of Housing and Urban Development be, and they are hereby, assured of full compliance by the City with regulations of the Department of Housing and Urban Development effectuating Title VI of the Civil Rights Act of 1964 and applicable Executive Orders. SECTION 5. That the necessity to authorize execution of all documents relating to Section 312 Rehabilitation Loans at the earliest practicable date creates a public emergency and an imperative public necessity requiring the suspension of the Charter rule that no ordinance or resolution shall be passed finally on the date of its introduction but that such ordinance or resolution shall be read at three several meetings of the City Council, and the Mayor having declared such emergency and necessity to exist, having requested the suspension of the Charter rule and that this resolution take effect and be in full force and effect from and after its passage, IT IS ACCORDINGLY SO RESOLVED this the .V day of December, 1977. ATTEST: City Secretary APPROVED: 92 DAY OF DECEMBER, 1977: J. BRUCE .AY000K, C ATTORNEY By Assistant Cify Attorne THE CITY OF CORPUS CHRISTI, TEXAS This ordinance is in effect and force with or without the signature of the Mayor, in accordance with Article II Section 6 of the City Charter. • AGREEMENT FOR PUBLIC BODY APPROVAL OF SECTION 312 REHABILITATION LOANS THIS AGREEMENT made and entered into on the date herein below specified, by and between the City of Corpus Christi (the City), and the United States of America (the Government), acting by and through the Secretary of Housing and Urban Development (the Secretary), W I T N E S S E T H: In consideration of the mutual covenants, promises, and rep- resentations contained herein, the parties do agree as follows: SEC. 1. PURPOSE OF AGREEMENT The City has responsibility and jurisdiction to carry out a Community Development Block Grant Program. The processing by the City and submission to the Department of Housing and Urban Development for approval of rehabilitation loans under Section 312 of the Housing Act of 1964, as amended (Section 312 loans) is presently authorized with respect to the area covered by such program. The purpose of this Agreement is to extend to the City authority to approve, in accordance with the regulations, policies, and requirements (hereinafter called regulations) of the Secretary, certain applications for Section 312 loans, subject to verification by the Secretary of fund availability for an approved loan. SEC. 2. APPLICABILITY OF APPROVAL AUTHORITY During the term of this Agreement, the City shall have final authority to approve applications for Section 312 loans with respect to residential and mixed - use property, which will contain one to four dwelling units after rehabilitation, and which is located in an area with respect to which the City has authority to process such loans, as described in Section 1 hereof. The City shall exercise such loan approval authority with respect to property in all such areas which come under its jurisdiction during the term of this Agreement. However, no loan approval under authority of this Agreement shall be valid until the Secretary has determined that funds are available therefor and has notified the City thereof. SEC. 3. NOTIFICATION OF FUND AVAILABILITY Upon receipt of the documentation required by the Secretary's regulations to be submitted with respect to Section 312 loans approved by the City, the Secretary shall promptly notify the City in writing whether sufficient funds are available for the approved loan. SEC. 4. COMPLIANCE WITH GOVERNMENT REGULATIONS The loan approval authority granted by this Agreement shall be exercised in accordance with the procedures and requirements established by the applicable regulations of the Secretary in effect from time to time. In particular, the City shall not notify an applicant of loan approval until receipt of notice of availability of funds for the loan from the Secretary. SEC. 5. EFFECT OF FAILURE TO COMPLY a. Grounds for Termination. Failure of the City to comply with the procedures and requirements of the Secretary with respect to loan approval, or with respect to other aspects of the Section 312 loan program, are grounds for termination of this Agreement at the option of the Secretary. However, such failure shall not create or justify any claim against the Government on the part of any third person, and shall not constitute grounds for any third person to contest the validity of any Section 312 loan approved by the City under authority of this Agreement and during its term. Defend and Hold Harmless. The City will warrant, defend, and hold harmless the Government with respect to all claims and losses caused by its failure to comply with the regulations of the Secretary and the requirements of applicable State and local law in its approval of Section 312 loans under authority of this Agreement, and in the subsequent settle- ment and administration of loans so approved. In the event the Secretary's regulations and the requirements of State and local law are inconsistent, the City shall request advice from the Secretary prior to approval of the Section 312 loan. SEC. 6. RESTRICTION ON OFFICIALS AUTHORIZED TO APPROVE LOANS The City shall not initially, or at any time during the term of this Agreement, confer its authority to approve Section 312 loans under this Agreement upon any officer or employee, who exercises any duties or responsibilities in the ad- ministration of the City's Section 312 Loan Program, including, without limitation: a. Preparation of rehabilitation work writeups or cost estimates, or of construction contract documents; b. Obtaining information with respect to, completing with the borrower, or processing a Section 312 loan application or any of the related documents constituting the loan application file; c. Selection of or negotiation with contractors to perform the rehabilita- tion work; d. Authorization of disbursements from the rehabilitation escrow account, or signing or countersigning of checks drawn on the rehabilitation escrow account; e. Inspection of the rehabilitation work to ascertain whether the work is completed or for the purpose of authorizing any partial payment requested by a contractor; or f. Authorization of signing or signing of Form HOD -6245, Certificate of Final Inspection. SEC. 7. SUBMISSION OF DOCUMENTATION Promptly upon approval of a Section 312 loan by an appropriate official of the City, the City shall assemble and transmit to the Secretary the documentation required to be submitted with respect to a Section 312 loan approved by the City, in accordance with such requirements and regulations of the Secretary as shall be in effect from time to time. The City shall also promptly submit copies as required of any resolutions affecting the identity of City official(s) authorized to approve Section 312 loans under this Agreement, any notices of the City's determination to cancel this Agreement, and any other required documentation or reports, in accordance with such requirements and regulations. SEC. 8. SUPERVISION, ADMINISTRATION, AND INSPECTION The City shall, at all proper times, provide or cause to be provided competent and adequate architectural, engineering, financial and other technical supervision and inspection of rehabilitation work financed by Section 312 loans approved under this Agreement, and with respect to its administration of the Section 312 loan program, and shall maintain them in accordance with such requirements and regu- lations of the Secretary as shall be in effect from time to time. The City shall, at any time during normal business hours, and as often as the Secretary of the Government may deem necessary, permit the Secretary or any other representative of the Government, to inspect, make excerpts or transcripts of, copy and audit such books and records. The City will cooperate in any inspection of rehabili- tation work financed by Section 312 loans approved under this Agreement, as deemed necessary by the Secretary or the Government. -2- • SEC. 9. COMPLIANCE WITH CIVIL RIGHTS ACT OF 1964 The City will perform its activities under this Agreement in accordance with all requirements imposed by, or pursuant to regulations of the Secretary effectuating, Title VI of the Civil Rights Act of 1964. SEC. 10. CANCELLATION OF APPROVED LOANS The Secretary reserves the right to cancel Section 312 loans approved by the City, in accordance with the requirements and regulations of the Secretary in effect from time to time. Upon receipt of such notice of cancellation, the City shall promptly submit to the Secretary any docu- mentation requested by him, and shall promptly refund the amount of the loan to the Secretary, on account of the Section 312 Loan Revolving Fund. SEC. 11. RIGHTS UNDER OTHER CONTRACTS The rights of the parties under this Agreement shall be in addition to, and not in derogation of, the rights of the parties under any contract for Federal assistance with respect to any of the Projects or Programs described in Section 1 hereof under the jurisdiction of the City. SEC. 12. TERM OF AGREEMENT This Agreement shall be effective from the date hereinbelow specified until terminated in accordance with Sec. 13 hereof. SEC. 13. TERMINATION OF AGREEMENT a. Automatic Termination. This Agreement shall automatically terminate on the official date of closeout of the last project or program (as described in Sec. 1 hereof) under the jurisdiction of the City, in the area of which Section 312 loans are authorized. b. Termination by Parties. This Agreement shall terminate 30 days after written notice of intent to terminate is sent by one party to the other, except that, when the City gives notice of its intent to ter- minate the Agreement, the Secretary may require the City to continue under the Agreement for a specified additional period of time, not to exceed 60 days, in order that arrangements may be made to accom- modate the workload resulting from the City's termination. Notice of termination under this subsection may be given by either party for cause or convenience. c. Suspension or Termination for Cause. The Secretary may, for cause, by written notice to the City, require that the City discontinue immediately the approval of loans under this Agreement pending com- pletion of specified corrective action by the City, or termination of this Agreement. SEC. 14. EFFECTIVE DATE This Agreement shall be effective the day of 19 SEC. 15. COUNTERPARTS OF AGREEMENT This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. -3- CJ • C] IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its behalf and its seal to be hereunto affixed and attested; and thereafter the Government has caused the same to be duly executed in its behalf this - day of , 19 ATTEST: Secretary (SEAL) APPROVED: rr�� �LDAY OF 19�/: J. BRUCE AYCOCK, CITY ATTO By fAssistem City forney r ctor of Fi ce ATTEST: CITY OF CORPUS CHRISTI By R. Marvin Townsend, City Manager UNITED STATES OF AMERICA SECRETARY OF HOUSING AND URBAN DEVELOPMENT Corpus Christi, T xas day oft , i r 1 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas C] For the reasons set forth in the emergency clause of the foregoing ordinance, a public emergency and imperative necessity exist for the suspension of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City Council; I, therefore, request that you suspend said Charter rule or requirement and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, MAYO THE CITY OF CORPUS CHRISTI, TEXAS The Charter rule was suspended by the following vote: Jason Luby Eduardo de Ases David Diaz Ruth Gill Bob Gulley Gabe Lozano, Sr. Edward L. Sample The above ordinance was passed by the following vote: Jason Luby Eduardo de Ases David Diaz Ruth Gill Bob Gulley Gabe Lozano, Sr. Edward L. Sample 14087